Hello traders and MarketClub members everywhere! Adam Hewison here and today's focus is gold (FOREX:XAUUSDO). It would appear that we are getting very close to seeing a significant reversal in the this market to the upside.
In this short video, I will be looking at a major trend line that has been in place since October 5, 2012. I will also be measuring some important 25 to 26 week cycles that are just kicking in. These cycles have been the driving force in gold over the past 12 months, so you need to pay attention to them.
Sometimes it's not obvious what drives prices and markets. It could be uncertainty or in gold's case, it could be the Ukraine, Syria, or the Dollar potentially losing its reserve status. Or, it could be something completely off the charts, no pun intended. We live in a world now where things can just show up out of the blue with no warning.
The one thing I like about technical analysis and charting is that price action, in my mind, is the most sum total of everyone's collective thinking.
Every market tends to swing too far on the downside and too high on the upside, only with technical analysis can you judge the perception of a market. Here at MarketClub, our goal has always been to try to pull out the fat part of the move and leave the other 10% for someone else. Remember, bulls and bears make money, but hogs get led to slaughter.